Bidders drive up Arizona auction sales, but consignors still wanted more

Bidders were eager to buy at the Arizona auctions last week | Barrett-Jackson photo

At least $50 million left on the table by reluctant sellers

According to Hagerty, the insurance and vehicle-valuation company that staffs each of the sales, the seven companies that offered up 3,176 vehicles for bidding during Arizona Auction Week 2018 posted $247.8 million in transactions.

Though that figure was $12 million less than year-ago numbers, Hagerty noted that more bidders took part in the auctions, “a soaring stock market and clarity on tax reform” are reason for continuing optimism, and added that “the immediate takeaway is that 2018 is shaping up to be a good year for the ‘Everyman’ Classic — that affordable, fun and largest segment of the market.”

While the seven auctions sold slightly fewer cars compared with year-ago numbers, the average price of those vehicles was up by more than $3,200.

Ford Thunderbird on the block at Silver Auctions Arizona during final day of auction week | Bob Golfen photo

The heart of the collector car market beat very strongly during the auctions. Hagerty noted that vehicles such as C3 Chevrolet Corvettes, early Chevrolet Camaros, vintage pickups and sport utilities, especially early Ford Broncos, even Fox-bodied Ford Mustangs were selling for more than what was considered “condition-appropriate” prices.

However, it added, “at the higher rungs on the pricing ladder, results weren’t as strong, but not for lack of effort on the bidders’ part.”

Hagerty noted that “nearly 90 percent of cars valued above $250,000 were bid to amounts at or above market-correct prices, although the sell-through rate here was only 70 percent (compared with 84 percent for the overall Arizona auction figure).”

While that $247.8 million figure for total sales is impressive, it could have been around $50 million more had consignors not rejected the high bids on their most-expensive offerings. At least five cars bid to more than $6 million failed to be hammered “sold.”

For collectors, the car’s story is often as relevant as the car itself.”

“However, the best examples of cars in this range have been appearing at the Amelia Island sales more frequently, so the March auctions will provide a better indication of whether the upper-most reaches of the market are slipping,” Hagerty noted.

“This week it also became clear that provenance is ever more important,” it reported. “The top lot of the week was Batista Pininfarina’s personal 1965 Ferrari 275 GTB Speciale, with numerous unique styling details, that Gooding & Company sold for $8.085 million.

“The 2005 Ford GT that Carroll Shelby originally purchased sold at Bonhams for $489,500, whereas a similar Ford GT without the star connection traded at $335,500 at Barrett-Jackson.

“Mr. Shelby’s 1966 Shelby GT350H also hammered sold at the Bonhams auction, this time for $253,000, or $100,000 above the Hagerty Price Guide value for a standard GT350H in similar condition.

“For collectors, the car’s story is often as relevant as the car itself.”

Bottom line from Hagerty: “The Arizona Auctions traditionally set the tone for the next six months, so we expect spending to pick up for most enthusiasts. The conclusion for the upper end isn’t quite so clear.”

The figures that follow are supplied by Hagerty and its observers at each venue. They include buyer’s fees but do not include all post-block sales, which continue for several days after the formal auction activity has concluded.